1
00:00:05,160 --> 00:00:10,760
Speaker 1: Live from the Heartbayer and the Crossroads of America. It's

2
00:00:10,840 --> 00:00:14,000
Speaker 1: Tony Cats today. The jobs report is out and it

3
00:00:14,080 --> 00:00:16,799
Speaker 1: kind of stinks. I mean, I guess you could find

4
00:00:16,880 --> 00:00:21,320
Speaker 1: good in anything, but when you see jobs in February

5
00:00:21,320 --> 00:00:24,360
Speaker 1: falling ninety two thousand compared to an estimate of fifty thousand,

6
00:00:25,400 --> 00:00:30,480
Speaker 1: and you have a downward revision of January losing jobs.

7
00:00:30,520 --> 00:00:31,920
Speaker 2: But Tony, we keep.

8
00:00:31,880 --> 00:00:36,080
Speaker 1: Talking about AI, AI, AI, AI, the other AI, your mother.

9
00:00:36,159 --> 00:00:36,960
Speaker 2: Everything's AI.

10
00:00:37,080 --> 00:00:39,320
Speaker 1: We don't have people, We've got AI, We've got data

11
00:00:39,400 --> 00:00:43,080
Speaker 1: centers having all the jobs. Isn't that like acceptable because

12
00:00:43,200 --> 00:00:47,479
Speaker 1: creative destruction. Isn't that what people would say? Maybe, but

13
00:00:47,520 --> 00:00:51,640
Speaker 1: it still doesn't look good. Unemployment is up again the AI.

14
00:00:52,479 --> 00:00:54,800
Speaker 1: When you're running for reelection, when you're running to win

15
00:00:54,840 --> 00:00:56,680
Speaker 1: the midterms, these are not the things you want.

16
00:00:57,080 --> 00:00:59,720
Speaker 2: And add this into a situation.

17
00:00:59,320 --> 00:01:02,000
Speaker 1: Regarding a where you now have oil that hit over

18
00:01:02,080 --> 00:01:04,360
Speaker 1: ninety dollars a barrel on the Brent crude coming out

19
00:01:04,360 --> 00:01:06,920
Speaker 1: of the oceans, it gives a lot of ammunition for

20
00:01:07,000 --> 00:01:07,639
Speaker 1: the other side.

21
00:01:07,680 --> 00:01:10,240
Speaker 2: For us, we only have to ask what it means.

22
00:01:10,319 --> 00:01:12,440
Speaker 1: Tony Katz, Tony Kats today, good to be with you,

23
00:01:12,520 --> 00:01:16,080
Speaker 1: Doctor Matt will is here economists at the University of Indianapolis.

24
00:01:16,560 --> 00:01:18,120
Speaker 1: You know, I forgot it's the first Friday of the

25
00:01:18,200 --> 00:01:21,480
Speaker 1: month and jobs numbers coming out. I am now looking

26
00:01:21,520 --> 00:01:24,039
Speaker 1: at everything with this giant grain of salt because of AI.

27
00:01:24,480 --> 00:01:27,160
Speaker 1: But it still doesn't change where media will push things,

28
00:01:27,200 --> 00:01:29,280
Speaker 1: and we have to understand what these things are really

29
00:01:29,319 --> 00:01:32,360
Speaker 1: saying to us. So give me the low lights and

30
00:01:32,400 --> 00:01:35,800
Speaker 1: the possible highlights of this latest job report which has

31
00:01:35,880 --> 00:01:37,720
Speaker 1: unemployment now at four point four percent.

32
00:01:38,800 --> 00:01:40,360
Speaker 3: Well, first of all, I have to give you a

33
00:01:40,360 --> 00:01:45,160
Speaker 3: tremendous credit for referring to creative destruction, because that's exactly

34
00:01:45,200 --> 00:01:47,960
Speaker 3: what's happening. That is for people out there that want

35
00:01:48,000 --> 00:01:50,320
Speaker 3: to look it up to the guy named Joseph Schumpater

36
00:01:50,800 --> 00:01:53,880
Speaker 3: developed that phrase and he talked about transitions that you

37
00:01:53,960 --> 00:01:56,280
Speaker 3: have to transition into the next phase of the economy,

38
00:01:56,560 --> 00:01:59,880
Speaker 3: and that's what we're seeing here. You can describe it perfectly, Tony.

39
00:02:00,400 --> 00:02:03,200
Speaker 3: This is an AI report, and it's a report that

40
00:02:03,360 --> 00:02:05,960
Speaker 3: I said last time when we spoke about this was

41
00:02:06,000 --> 00:02:10,960
Speaker 3: going to continue. We're transitioning away from the traditional economy

42
00:02:10,960 --> 00:02:13,720
Speaker 3: that we've seen into the next phase, which is an

43
00:02:13,760 --> 00:02:19,040
Speaker 3: AI driven You're going to have transitional unemployment. It's not bad. Yes,

44
00:02:19,360 --> 00:02:22,880
Speaker 3: ninety two thousand people, that's bad, especially when the goal

45
00:02:23,000 --> 00:02:25,400
Speaker 3: was You know that the estimate was fifty So we

46
00:02:25,440 --> 00:02:29,079
Speaker 3: see a one hundred and twenty plus thousand swing. That

47
00:02:29,240 --> 00:02:33,080
Speaker 3: is not insignificant. So those people, you know, we got

48
00:02:33,080 --> 00:02:35,760
Speaker 3: to be understanding. They've lost their jobs. But if you

49
00:02:35,760 --> 00:02:37,679
Speaker 3: look in the report, let me tell you where the

50
00:02:37,720 --> 00:02:41,320
Speaker 3: nugget of good news is. Okay, every category was down.

51
00:02:41,639 --> 00:02:45,800
Speaker 3: That's not the good news except for two wholesale and

52
00:02:45,840 --> 00:02:49,880
Speaker 3: financial services wholesale. That's the nugget of good news. It's

53
00:02:49,919 --> 00:02:52,760
Speaker 3: consistent with the ISM report. We saw the other day

54
00:02:53,200 --> 00:02:57,239
Speaker 3: that manufacturing is up. When manufacturing is up, when we're

55
00:02:57,240 --> 00:03:01,400
Speaker 3: producing more stuff now with AI, So the actual manufacturing

56
00:03:01,440 --> 00:03:04,880
Speaker 3: workers are dropped, which is consistent with the ISM report.

57
00:03:05,240 --> 00:03:08,280
Speaker 3: But the distribution of those goods, the whole sale is up.

58
00:03:08,320 --> 00:03:10,400
Speaker 3: That means that we're making a lot more stuff and

59
00:03:10,440 --> 00:03:13,440
Speaker 3: we're sending it out to the world. That is good news.

60
00:03:13,639 --> 00:03:16,000
Speaker 3: We're going through a tough period of transition. People have

61
00:03:16,080 --> 00:03:19,200
Speaker 3: to just understand that, and it's going to continue. I

62
00:03:19,280 --> 00:03:21,320
Speaker 3: got to give Trump a lot of credit here because

63
00:03:21,360 --> 00:03:23,880
Speaker 3: he's doing a few things that are not good politically,

64
00:03:24,120 --> 00:03:27,040
Speaker 3: but are good economically. He's the one who set the

65
00:03:27,040 --> 00:03:30,679
Speaker 3: stage to allow this AI transition. He's growing our economy

66
00:03:30,760 --> 00:03:34,839
Speaker 3: by leaps and bounds. He's growing manufacturing, but people get

67
00:03:34,880 --> 00:03:37,000
Speaker 3: laid off and they're voters, so it's not in his

68
00:03:37,080 --> 00:03:39,960
Speaker 3: best interest. But it's a good report if you look

69
00:03:40,000 --> 00:03:42,560
Speaker 3: at the transition, not the today numbers.

70
00:03:43,480 --> 00:03:48,200
Speaker 1: Talking to doctor Matt Well, economist at the University of Indianapolis.

71
00:03:48,240 --> 00:03:52,040
Speaker 1: So yes, this idea that AI is going to change things,

72
00:03:52,080 --> 00:03:53,800
Speaker 1: but it doesn't change things in the eyes of the

73
00:03:53,880 --> 00:03:57,960
Speaker 1: American people right away. And we still have to accept

74
00:03:57,960 --> 00:04:00,800
Speaker 1: the fact that while the AI might be doing the

75
00:04:00,840 --> 00:04:04,960
Speaker 1: work of people for people, twenty two people, those twenty

76
00:04:05,000 --> 00:04:09,360
Speaker 1: two people still need to be out there creating. Does

77
00:04:10,040 --> 00:04:15,200
Speaker 1: the economist look at the creation as an overall number

78
00:04:15,600 --> 00:04:18,160
Speaker 1: or does it take a look at who does the creating,

79
00:04:18,520 --> 00:04:22,279
Speaker 1: the individual, the person versus the machine.

80
00:04:23,320 --> 00:04:25,800
Speaker 3: You know, that's a good question. And this is where

81
00:04:25,839 --> 00:04:29,000
Speaker 3: I'm going to, you know, talk about I'm a financial economist,

82
00:04:29,240 --> 00:04:32,600
Speaker 3: not a traditional economist, because traditional economics doesn't look at that.

83
00:04:32,800 --> 00:04:36,200
Speaker 3: Traditional economics is knesing and they say, oh, government spending good,

84
00:04:36,560 --> 00:04:40,080
Speaker 3: job loss bad. But in finance, we care about where

85
00:04:40,120 --> 00:04:42,480
Speaker 3: the job comes from. We care if it's a government

86
00:04:42,560 --> 00:04:45,599
Speaker 3: job or a private job. And so yes, in the

87
00:04:45,680 --> 00:04:49,159
Speaker 3: financial markets, we see that there is this transition and

88
00:04:49,560 --> 00:04:53,360
Speaker 3: we're okay. God, that sounds terrible, doesn't it. We're not

89
00:04:53,440 --> 00:04:55,760
Speaker 3: okay with the loss of jobs, but we're okay with

90
00:04:55,839 --> 00:04:59,240
Speaker 3: the transition. And what's going to happen because of his deregulation,

91
00:04:59,640 --> 00:05:02,279
Speaker 3: because of his one big beautiful bill, because of the

92
00:05:02,320 --> 00:05:04,840
Speaker 3: tax incentives, and I can give you a whole list

93
00:05:04,880 --> 00:05:08,359
Speaker 3: of other deregulation and executive orders. These people who have

94
00:05:08,440 --> 00:05:11,080
Speaker 3: lost their jobs are going to have opportunities in the

95
00:05:11,120 --> 00:05:13,760
Speaker 3: new economy. And I hate that phrase. Also, that's the

96
00:05:13,800 --> 00:05:16,520
Speaker 3: kind of a buzz phrase, the new economy. But it

97
00:05:16,560 --> 00:05:17,279
Speaker 3: is going to be new.

98
00:05:18,400 --> 00:05:23,080
Speaker 1: So now we take a look at the new this

99
00:05:23,320 --> 00:05:28,120
Speaker 1: is the way it is. The argument is, hey, we're

100
00:05:28,120 --> 00:05:30,840
Speaker 1: still generating wealth and that's all that matters. In the

101
00:05:30,880 --> 00:05:34,400
Speaker 1: generating of wealth is going to create other opportunities. How

102
00:05:34,440 --> 00:05:36,360
Speaker 1: does it do so? I mean, just as a matter

103
00:05:36,400 --> 00:05:38,520
Speaker 1: of how does the economists view it doing so?

104
00:05:39,160 --> 00:05:41,360
Speaker 2: If the future job does not involve.

105
00:05:41,040 --> 00:05:45,200
Speaker 3: People, okay, it will involve people. So let me say

106
00:05:45,360 --> 00:05:48,239
Speaker 3: how the financial economists use it? We have a pie

107
00:05:48,480 --> 00:05:50,960
Speaker 3: in this pie and if everyone can visualize, there's the

108
00:05:51,000 --> 00:05:54,320
Speaker 3: needs and the ones. And as we evolve into this

109
00:05:54,360 --> 00:05:58,159
Speaker 3: new economy, the cost of your needs will shrink. Will

110
00:05:58,279 --> 00:06:00,960
Speaker 3: be spending less money on what you needed and more

111
00:06:01,000 --> 00:06:04,400
Speaker 3: money available for what you want. So in this report

112
00:06:04,880 --> 00:06:08,039
Speaker 3: financial services are growing. We see other than for the war,

113
00:06:08,279 --> 00:06:12,400
Speaker 3: the market's growing wealth is being created. Well, what's that mean?

114
00:06:12,680 --> 00:06:18,000
Speaker 3: That means that somebody, some fantastic entrepreneur, a creative destroyer

115
00:06:18,120 --> 00:06:20,960
Speaker 3: as Schumpeter called it, is going to want to get

116
00:06:21,000 --> 00:06:23,680
Speaker 3: those dollars. They're going to innovate. They're going to create

117
00:06:23,680 --> 00:06:25,080
Speaker 3: something new, which means they're going to have to hire

118
00:06:25,080 --> 00:06:27,000
Speaker 3: people and they're going to have to train them to

119
00:06:27,040 --> 00:06:30,520
Speaker 3: do the skills that are needed for that job. Tony,

120
00:06:30,560 --> 00:06:32,760
Speaker 3: I can't tell you how excited I am to see

121
00:06:32,760 --> 00:06:35,839
Speaker 3: this transition in the economy. I know it's painful, but

122
00:06:35,920 --> 00:06:38,000
Speaker 3: we saw it in the Internet when it was invented.

123
00:06:38,480 --> 00:06:40,640
Speaker 3: You know, we are on the We have a front

124
00:06:40,720 --> 00:06:43,799
Speaker 3: row seat to a transitioning economy into the next phase.

125
00:06:44,320 --> 00:06:46,800
Speaker 3: That doesn't happen very many times in your lifetime, and

126
00:06:46,839 --> 00:06:48,239
Speaker 3: you and I are going to see it twice.

127
00:06:48,560 --> 00:06:52,400
Speaker 1: Yes, but when we get to see it afterwards. Ipso facto,

128
00:06:52,720 --> 00:06:54,760
Speaker 1: we get to see the results being in. It is

129
00:06:54,880 --> 00:06:56,920
Speaker 1: very difficult for our whole bunch of people who are

130
00:06:56,960 --> 00:06:59,480
Speaker 1: affected by it.

131
00:06:59,080 --> 00:07:03,360
Speaker 3: It is Tony. I have tremendous empathy for those individuals.

132
00:07:03,520 --> 00:07:06,880
Speaker 3: Now that's a separate discussion beyond economics and finance. How

133
00:07:06,880 --> 00:07:09,400
Speaker 3: do we handle that transition. Now, there are people on

134
00:07:09,440 --> 00:07:11,000
Speaker 3: the left who say, well, the government needs to step

135
00:07:11,040 --> 00:07:12,640
Speaker 3: in and they need to do everything and provide a

136
00:07:12,680 --> 00:07:15,360
Speaker 3: safety net. And there's people on the right who believe, no,

137
00:07:15,640 --> 00:07:18,920
Speaker 3: it's the role of private charities and private industry to

138
00:07:18,960 --> 00:07:21,840
Speaker 3: retrain these people. But I don't believe that the solution

139
00:07:21,960 --> 00:07:23,320
Speaker 3: is for the government to step in. But that's a

140
00:07:23,400 --> 00:07:26,000
Speaker 3: legitimate debate about how do you manage a transition. But

141
00:07:26,080 --> 00:07:28,440
Speaker 3: we cannot stop the transition. We must let it occur

142
00:07:28,520 --> 00:07:30,560
Speaker 3: if we want to advance in society.

143
00:07:31,280 --> 00:07:34,840
Speaker 1: Talking to doctor Matt Well, economists at the University of Indianapolis,

144
00:07:35,720 --> 00:07:37,920
Speaker 1: and when I see unemployment at four point four percent,

145
00:07:37,960 --> 00:07:39,960
Speaker 1: I don't know what to really do sometimes with the

146
00:07:40,040 --> 00:07:43,440
Speaker 1: unemployment number because very often this number does not include

147
00:07:43,440 --> 00:07:47,000
Speaker 1: people who have walked away from the job force all together.

148
00:07:47,960 --> 00:07:50,240
Speaker 2: And that is also we should be asking ourselves.

149
00:07:50,280 --> 00:07:52,920
Speaker 1: You know, there's this interesting report about four O one

150
00:07:53,040 --> 00:07:55,640
Speaker 1: k's that four A one k's.

151
00:07:55,560 --> 00:07:57,160
Speaker 2: Are up overall.

152
00:07:57,360 --> 00:07:59,280
Speaker 1: The average balance is now one hundred and forty six

153
00:07:59,560 --> 00:08:03,120
Speaker 1: four hundred dollars. It rows eleven percent in twenty twenty five.

154
00:08:03,120 --> 00:08:05,320
Speaker 1: The number of four to one K millionaires is now

155
00:08:05,400 --> 00:08:08,520
Speaker 1: six hundred and sixty five thousand as of the fourth

156
00:08:08,600 --> 00:08:12,440
Speaker 1: quarter twenty twenty five, and that number is up from

157
00:08:12,480 --> 00:08:14,640
Speaker 1: five hundred and thirty seven thousand, four oh one K

158
00:08:14,760 --> 00:08:18,920
Speaker 1: millionaires just a year ago. But we also see people

159
00:08:19,120 --> 00:08:22,480
Speaker 1: taking from their four oh one k now six percent

160
00:08:22,520 --> 00:08:26,200
Speaker 1: of people taking hardship withdrawals from their four oh one ks.

161
00:08:26,440 --> 00:08:30,280
Speaker 1: So as an overall look at the economy, the unemployment number,

162
00:08:30,360 --> 00:08:33,360
Speaker 1: this four oh one K number. Is this a strong economy?

163
00:08:33,400 --> 00:08:35,280
Speaker 1: Is this an on its way economy? Or is this

164
00:08:35,320 --> 00:08:36,360
Speaker 1: a teetering economy?

165
00:08:37,160 --> 00:08:40,440
Speaker 3: No, it is. It's an on its way economy that's

166
00:08:40,480 --> 00:08:42,960
Speaker 3: in transition. You know, you made a good point about

167
00:08:43,000 --> 00:08:45,440
Speaker 3: the unemployment rate four point four. What's that mean? It

168
00:08:45,440 --> 00:08:48,040
Speaker 3: doesn't include things. There's a number, and I apologize I

169
00:08:48,040 --> 00:08:50,360
Speaker 3: didn't look it up before we spoke, called the U

170
00:08:50,520 --> 00:08:53,360
Speaker 3: six number. It's in the same report you just have

171
00:08:53,360 --> 00:08:55,480
Speaker 3: to dig down and find it. The U six number

172
00:08:55,600 --> 00:08:59,000
Speaker 3: is a more accurate measurement of employment, and it's higher.

173
00:08:59,520 --> 00:09:02,840
Speaker 3: We see and what you just said about people tapping

174
00:09:02,840 --> 00:09:05,480
Speaker 3: in their four oh one K, that's a reflection of

175
00:09:05,520 --> 00:09:09,160
Speaker 3: the U six number. So four oh one K values

176
00:09:09,200 --> 00:09:12,560
Speaker 3: are up. Why because of this expanding, growing economy that

177
00:09:12,559 --> 00:09:15,400
Speaker 3: the wealth is being created. We see it, you cited

178
00:09:15,440 --> 00:09:19,720
Speaker 3: the statistics, but we also see the transition into a

179
00:09:19,760 --> 00:09:23,600
Speaker 3: new economy, and therefore people are tapping into that four

180
00:09:23,640 --> 00:09:25,920
Speaker 3: oh one K, those folks who are in the transition.

181
00:09:26,400 --> 00:09:30,640
Speaker 3: All the data is consistent. It's all consistent with a

182
00:09:30,679 --> 00:09:35,080
Speaker 3: wealth producing, growing, transitioning economy. Every piece of data is

183
00:09:35,120 --> 00:09:35,959
Speaker 3: consistent on this.

184
00:09:36,720 --> 00:09:38,800
Speaker 2: By the way, I did the AI search for the

185
00:09:38,880 --> 00:09:39,400
Speaker 2: U six.

186
00:09:40,760 --> 00:09:44,880
Speaker 1: According to the AI machine, the U six and February

187
00:09:44,920 --> 00:09:46,800
Speaker 1: twenty twenty six is eight point seven percent.

188
00:09:47,600 --> 00:09:49,800
Speaker 3: Okay, that's the number you used to rely on. That

189
00:09:49,920 --> 00:09:52,360
Speaker 3: is a legit. I trust that number better than the

190
00:09:52,360 --> 00:09:53,680
Speaker 3: one that's on the headlines.

191
00:09:54,320 --> 00:09:56,840
Speaker 1: But do I concern myself because that says unemployment save

192
00:09:56,840 --> 00:10:00,280
Speaker 1: point seven percent? Shouldn't everybody be freaking out? Air is

193
00:10:00,360 --> 00:10:03,720
Speaker 1: on fire, the sky is falling, We're all gonna die. Like,

194
00:10:04,280 --> 00:10:06,120
Speaker 1: isn't that a horrifying number.

195
00:10:07,040 --> 00:10:09,520
Speaker 3: It is a very bad number. And guess what, it's

196
00:10:09,559 --> 00:10:13,920
Speaker 3: a necessary evil. Back in the early twentieth century, we

197
00:10:13,960 --> 00:10:16,839
Speaker 3: had people walking around saying, Oh, that darn car industry.

198
00:10:17,000 --> 00:10:19,439
Speaker 3: Look at all the horse and buggy makers. They're getting

199
00:10:19,440 --> 00:10:21,760
Speaker 3: put out of business. We got to stop this. No,

200
00:10:22,000 --> 00:10:25,040
Speaker 3: it's okay, it's okay. The horse and buggy industry had

201
00:10:25,040 --> 00:10:28,240
Speaker 3: to leave and the car industry was very successful for

202
00:10:28,280 --> 00:10:32,440
Speaker 3: the economy. We're doing it again. That's perfectly fine. It's

203
00:10:32,520 --> 00:10:36,280
Speaker 3: not comfortable, And I think the discussion is not a

204
00:10:36,320 --> 00:10:39,600
Speaker 3: financial economic discussion. It's a social discussion, which is how

205
00:10:39,640 --> 00:10:43,000
Speaker 3: do we manage and help the people through this transition?

206
00:10:43,240 --> 00:10:45,680
Speaker 2: And what is that's legitimate doesn't matter.

207
00:10:46,160 --> 00:10:48,679
Speaker 1: Just does that get helped in the world of manufacturing,

208
00:10:48,720 --> 00:10:50,480
Speaker 1: does it get helped in the world a service? I

209
00:10:50,520 --> 00:10:52,280
Speaker 1: know a lot of people used to talk on fact,

210
00:10:52,320 --> 00:10:55,880
Speaker 1: especially eighties, nineties, early two thousands, were the service economy.

211
00:10:55,880 --> 00:10:57,360
Speaker 1: That's what we want to be. Let other people make

212
00:10:57,360 --> 00:10:59,520
Speaker 1: the things. I always thought that was an insane thought.

213
00:10:59,679 --> 00:11:02,240
Speaker 1: Why can't we build things some people want to build?

214
00:11:02,480 --> 00:11:05,280
Speaker 1: It's not about just servicing all these things all the time.

215
00:11:05,520 --> 00:11:07,560
Speaker 1: And I think you need to have a proper mix

216
00:11:08,320 --> 00:11:11,960
Speaker 1: those people who have been removed from their positions because

217
00:11:12,000 --> 00:11:16,920
Speaker 1: of AI and might not be in the reskill pool

218
00:11:17,120 --> 00:11:20,079
Speaker 1: to get into other fields. What are the kind of

219
00:11:20,200 --> 00:11:24,120
Speaker 1: jobs that we want to see America create in order

220
00:11:24,160 --> 00:11:27,199
Speaker 1: to help them through that will also provide value long

221
00:11:27,320 --> 00:11:28,200
Speaker 1: term to the nation.

222
00:11:29,400 --> 00:11:32,280
Speaker 3: Okay, I don't want to give you a big picture answer.

223
00:11:32,280 --> 00:11:35,200
Speaker 3: I want to give you a specific, sure answer. Okay,

224
00:11:35,400 --> 00:11:38,959
Speaker 3: in my institution where I teach, two years ago, we're

225
00:11:39,000 --> 00:11:41,800
Speaker 3: teaching people in supply chain management to go into factories

226
00:11:42,000 --> 00:11:46,480
Speaker 3: and produce goods. Today, in that exact same major, we're

227
00:11:46,520 --> 00:11:49,400
Speaker 3: teaching the students how to train an AI to do

228
00:11:49,440 --> 00:11:51,920
Speaker 3: the things they were doing two years ago. We are

229
00:11:51,960 --> 00:11:54,319
Speaker 3: teaching our students to develop it. And you're thinking, well,

230
00:11:54,360 --> 00:11:57,040
Speaker 3: that's going to lose jobs. No, yes, you're going to

231
00:11:57,120 --> 00:11:59,160
Speaker 3: lose a job on the front end, but you're going

232
00:11:59,240 --> 00:12:02,640
Speaker 3: to make jobs the back end because your company will grow.

233
00:12:03,360 --> 00:12:05,439
Speaker 3: So you're going to have instead of five employees, you're

234
00:12:05,480 --> 00:12:09,400
Speaker 3: going to have seven. But of the five only maybe

235
00:12:09,400 --> 00:12:11,360
Speaker 3: one or two will be doing the manufacturing. The rest

236
00:12:11,400 --> 00:12:14,719
Speaker 3: will be training the new AI. So we and I've

237
00:12:14,760 --> 00:12:18,080
Speaker 3: redesigned three of my classes to be almost entirely AI

238
00:12:18,320 --> 00:12:21,800
Speaker 3: driven because that's what the economy needs. So we have

239
00:12:21,880 --> 00:12:24,680
Speaker 3: to train people to make stuff. You're right, but you

240
00:12:24,720 --> 00:12:27,439
Speaker 3: don't make it by sticking the screwdriver in a hole.

241
00:12:27,720 --> 00:12:29,800
Speaker 3: Now you make it by training the machine that doesn't.

242
00:12:30,800 --> 00:12:35,440
Speaker 1: And is there a belief that's that that retraining can

243
00:12:35,559 --> 00:12:40,320
Speaker 1: work for a large segment of population or does the

244
00:12:40,360 --> 00:12:43,280
Speaker 1: economist I'm not saying you're cold heart, and I'm not

245
00:12:43,400 --> 00:12:44,480
Speaker 1: putting this all on you.

246
00:12:44,880 --> 00:12:47,880
Speaker 2: Does the economists not worry about that part of it?

247
00:12:49,160 --> 00:12:55,000
Speaker 3: You know, you mean the pure you know, utilitarian economist

248
00:12:55,360 --> 00:12:57,480
Speaker 3: doesn't think about that part. That's why I said a

249
00:12:57,520 --> 00:13:00,160
Speaker 3: moment ago, we have to have a discussion on the

250
00:13:00,200 --> 00:13:03,480
Speaker 3: social implications of this and how do we get through it?

251
00:13:03,520 --> 00:13:06,880
Speaker 3: You know, you say frequently we must get through this.

252
00:13:06,880 --> 00:13:08,439
Speaker 3: This is one of those things. We've got to get

253
00:13:08,440 --> 00:13:09,840
Speaker 3: through it, and we need to sit around to have

254
00:13:09,960 --> 00:13:12,160
Speaker 3: a topic in a discussion and say how do we

255
00:13:12,200 --> 00:13:14,040
Speaker 3: get through it. We can't deny it, we can't put

256
00:13:14,040 --> 00:13:16,200
Speaker 3: a roadblock up and stop it. We just have to

257
00:13:16,200 --> 00:13:18,520
Speaker 3: figure out how to get through it. And that's less

258
00:13:18,559 --> 00:13:22,280
Speaker 3: of an economic discussion and more of a social discussion.

259
00:13:22,600 --> 00:13:26,840
Speaker 3: Provided the answer isn't throwing roadblocks in front of the economy.

260
00:13:26,960 --> 00:13:29,320
Speaker 3: That is not the solution. To keep us making horse

261
00:13:29,360 --> 00:13:31,840
Speaker 3: and buggies instead of cars is not the solution.

262
00:13:32,520 --> 00:13:35,400
Speaker 1: Before I let you go, is there anything about this

263
00:13:35,480 --> 00:13:38,120
Speaker 1: report that you should that you look at and say, well,

264
00:13:38,120 --> 00:13:39,400
Speaker 1: that's an awesome piece of news.

265
00:13:40,280 --> 00:13:42,680
Speaker 3: I do. I like that the financial services segment and

266
00:13:42,720 --> 00:13:45,200
Speaker 3: the wholesale segment I mentioned at the very beginning, those

267
00:13:45,240 --> 00:13:47,120
Speaker 3: are growing. And even though I've already said I want

268
00:13:47,120 --> 00:13:49,520
Speaker 3: to leave people with that, that tells us that the

269
00:13:49,559 --> 00:13:53,720
Speaker 3: manufacturing people are doing well. Now. Yes, the people on

270
00:13:53,760 --> 00:13:56,280
Speaker 3: the front line are not. Are there a fewer of them,

271
00:13:56,600 --> 00:13:58,840
Speaker 3: but the ones making the product out the door and

272
00:13:58,880 --> 00:14:01,240
Speaker 3: getting it to the customer. There's a lot of those

273
00:14:01,280 --> 00:14:04,240
Speaker 3: folks being hired right now. And financial services is where

274
00:14:04,280 --> 00:14:07,760
Speaker 3: the transition occurs from the old economy to the new economy,

275
00:14:07,800 --> 00:14:10,040
Speaker 3: because it needs to transition the money from the old

276
00:14:10,080 --> 00:14:12,880
Speaker 3: to the new. There's good news to be seen in this,

277
00:14:13,760 --> 00:14:15,560
Speaker 3: but it's a tough report, Tony.

278
00:14:15,640 --> 00:14:18,840
Speaker 1: I'm not going to lie, doctor Matt Will, economist at

279
00:14:18,880 --> 00:14:20,920
Speaker 1: the University of Indianapolis.

280
00:14:20,920 --> 00:14:22,720
Speaker 2: I appreciate you taking the time to break that down

281
00:14:22,760 --> 00:14:25,000
Speaker 2: with us. More coming up Tom Tony Katz, This is

282
00:14:25,080 --> 00:14:25,960
Speaker 2: Tony Cats Today,